"Great execution is the platform for great innovation," said Thomas Rotherham, Grant Thornton's U.S. managing partner of client services. "Management's challenge is to achieve a balance between execution and innovation, both of which require different skill sets and competencies."

Business leaders acknowledge that they must face special challenges when juggling innovation and execution.

Four out of 10 business leaders note these challenges: balancing innovation and execution resource allocation (41%); inspiring innovation without compromising on the routine and rigor of execution (40%) and building organizational capabilities accordingly (40%).

BOTTOMLINE: The ability to execute strategy is a key enabler of innovation. It is the balance between strategy and operations that enables organizations to concentrate on innovation.